Strategy Boosts STRC Buybacks Sixfold Over Bitcoin Purchases
Michael Saylor’s Strategy shifted its capital allocation strategy last week, focusing heavily on repurchasing its preferred stock over Bitcoin acquisitions. The company spent $176.3 million to buy back 1.77 million shares of STRC preferred stock, far exceeding its $28.7 million investment in 334 Bitcoin. This move brought Strategy’s total Bitcoin holdings to exactly 848,000 BTC, but the stark contrast in spending highlights a growing emphasis on preferred securities.
In a separate move, Strategy proposed changing the dividend schedule for its preferred stock. The company seeks shareholder approval to pay dividends daily for its STRC, STRF, STRK, and STRD preferred stocks, replacing the current twice-monthly and quarterly schedules. If approved, STRC dividends would start in November, while the others would begin in January. The change aims to improve liquidity and reduce reinvestment delays without altering dividend rates.
Despite its strong association with Bitcoin accumulation, Strategy’s Q3 report showed a slowdown in net Bitcoin growth. The company added only 7,218 BTC while selling 5,553 BTC, resulting in a modest 0.2% increase in holdings. This contrasts sharply with Q2’s nearly 11% growth. Additionally, Strategy reported a $20.91 billion gain on its digital assets, largely due to the increased fair value of its Bitcoin holdings.
The company’s shares and Bitcoin trading data reflected these developments. MSTR shares were up 2.9% in premarket trading, while STRC traded near its $100 stated amount. Bitcoin itself was trading around $86,063. Investors will watch the Oct. 28 shareholder vote and future weekly BTC purchase disclosures to gauge Strategy’s ongoing capital allocation strategy.